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Young Millionaire Entrepreneurs who used the Power of Leverage to Become Millionaires-Part 1
In my hub How Rich and Poor Use Power of Leverage, I took time discussing types of leverages the rich and poor use to either become rich or poor.
It is mind blowing reading about young men and women make it big in the financial world of 21st century. As a matter of fact, Dr. Robert Rosen in his book Global Literacy, a book from which I draw much of my global business insights, described 21st century as being a borderless economy. Nothing is further from truth as young people with nothing but just a bright idea or sometimes even craziest idea strike pot of gold overnight.
You may remember the guy who invented dog’s shades. The guy sold the idea well and became a millionaire.
Remember the person who made the plastic wish bone. A simpe idea indeed, But sold millions and BANG. The founder became a millionaire Ken Ahroni came up with the concept during Thanksgiving dinner in 1999. He realized there was only one wishbone at the table, and it would have to dry out before it could be broken. He thought a fake wishbone would solve sibling squabbling and allow everyone the chance to make a wish on Thanksgiving Day. So he did his research and found a “secret formula” that allows the Lucky Break Wishbone to break just like a dried wishbone. By 2004, the product was in 10 stores. Now, Lucky Break Wishbone is in about 800 stores nationwide and has generated about $4 million in sales since it was introduced.
If this enough, I was just reading Facebook a few days ago and read about Mark Zukerberg, the founder of Facebook inventing a new Facebook application that would reach about 500, 000 who need to keep in touch and I don’t know how because Facebook is already serving its purpose of social network. This is how crazy, the global consumers are. We tend to just accept anything our friends and friends of our friends say it’s good.
Intelligent kids with innovative spirit, a razor sharp-focus and an ability to hold to their own in this highly volatile economy of 21st century are making it huge. We have flush of tycoons flooding the 21st century business arena, previously ruled with iron fist by well-established business owners who took over decade or more to build their empires.
These young minds have found and understand the real meaning of leverage. They have discovered how to do more with less effort and get brilliant results.
Just as there are these ambitious kids with rich mindset, there are those with poor mentality. Because if they can amass so much wealth in very short time, they must be doing something right…They either knowingly or unknowingly follow Law of Reciprocity.
Law of Reciprocity
The law of reciprocity as discussed by self-made millionaire and investor Jan Somers in her book “More Wealth from residential property” states to receive, you must first give. Self-made millionaire, educator and investor Robert Kiyosaki discussed in great detail in his book “Retire Young Retire Rich” that to grow your wealth; you must first serve more people. Robert said this is the leverage the rich use and the poor don’t.
Professor Kamene from University of Papua New Guinea, in his work studying Melanesina Culture and leadership, also covered Law of reciprocity. Maybe by looking at Law of Reciprocity from Professor Kamene’s perspective, will help you understand how these young kids are using this Law as leverage to amass greater wealth overnight.
In the community people depend very much on each other. This is manifested in the principle of giving and receivingof services in daily affairs of the community. This principle allows people to exchange products, services, labor, wealth and resources. The exchange renews and enhances the existing relationship between and within various groups in the community. This reveals a durable bond. The bond holds the different parts together. Here the relational value is created and maintained.Most so, reciprocity ensures services are rendered on regular basis. That target audience continues to receive what they need. More work reveals that reciprocity also acts a social safety net and fall back social bank to provide long term social security to individual members, groups and the community at large. This provides a strong motivation for groups to cling to one another. By serving more, the rich minded people, gain more compared to the poor.
Young Millionaire entrepreneurs
Young Millionaire 1: Jon Koon
He has style and kind of guy you could easily miss as one of those guys that frequent the pub next door and dark shades and faded jeans. He is Jon Koon, owner of Tykoon Brand Holdings that in 2012 was worth $80 million. Jon is of Chinese-American origin, giving him this Asiatic look that confuses his admirers. His business line is in auto parts and fashion.
Jon used the leverage of his mind, technology and network as I discussed in my previous hub on Leverages. Jon is some who you may wish to call “with eye for details”. He saw inconsistencies in the way American and Japan giant automobiles were providing in terms of innovation and design. BANG. He had a business idea. Not seemingly a million dollar idea but he was determined to see it work. Jon quickly moved into business by purchasing car parts from overseas supply chains and used the leverage of network by teaming up with mechanic. They would spice up the car giving the magic touch to tons of cars of spiffy, high end-finishes and fancy engines with top notch speakers. That’s it. The more they served, the more richer Jon grew. Jon eventually ventured into fashion business and now is one of the richest young people on the face of earth. Imagine! Jon started business at the gar of 16.
Lessons from we can learn JonKoon
Are there lessons to be learnt from Jon? Yes.
- Jon thought like the rich do. To him, he was the creator of his own life unlike the poor minded who think life happens to them.
- He used the power of leverage. The used the leverage of his mind, leverage of technology and leverage of network.
Young Millionaire 2: Connor Zwick
If you look closely at how young Connor amassed greater wealth, you will find subtle similarities with the Jon Koon. Connor is young and handsome. But he is no ordinary young handsome man.Connor is intellectual and possesses wisdom of the old and aged. If there is a young person who has heart for many other young people, Connor is certainly one of those sharp thinking young man. He is someone who easily possesses the mind of the rich. He saw how the education system was letting millions of down. Young Connor went to the extreme of trying to convince the government of change policies to help those in need of better education. No better response from the government as usual pushed the young entrepreneur to the edge. He never sat down and complained like many others teenagers usually do. Let me give you a practical example. In the University I attended, we always complained about old books with outdated information. No one wanted to do something even though most of us knew how to use internet. Now I run a successful social lending business but wish I have seen the opportunity back then…It’s never too late, but if a student from Papua New reads this hub, there is opportunity there. Use technology as your leverage.
Young Connor built a website to educate the underprivileged. It soon became a popular grassroots. The site provides the much needed educational materials at the lowest cost. Law of Reciprocity at work. The larger the number he served, the richer he continues to become. He certainly possessed the mind of the rich, breaking from the reign of poor mindset and inconsistent education system and amassed greater wealth. His business is education and he continues teaching using innovative technology. His site has 1.6 million users still continues grow.
Lessons we can learn fromConnor Zwick
- Connor leant from the existing system and used the power of leverage and
- Served more people and amassed greater wealth in return.
Young Millionaire 3: Sean Belnick
He is no different to Jon and Connor. That is why I said, if these young people have amassed greater wealth, then they have done something right that is worth our understanding. Sean’s business in furniture. Call him the furniture guy or whatever you wanna call him. But is a tycoon. When his soon to be rivals where too busy trying to sell more furniture offline in the traditional business manner where the customer sends request, the supplier prepares the quotation and sends to the customer who then sends purchase and blah blah blah. “There must be a better way to do this “thought young Sean. Internet. BANG! He used his mind and the internet. The leverage previous furniture dealers’ just didn’t see. They stood on the shoulders of the giants with eyes closed as I said in my coming book “writing your way to fame, wealth and legacy”. Leverages like mind, finance, internet, network etc are there but if you don’t educate yourself on how to use those leverages, and then I simply say you are standing on the shoulders of the giants with eyes perfectly closed even though there is so much noise around you. Maybe you even closed your ears. I don’t know.
Young Sean build a website to sell furniture. He wanted to make it easy for the buyers to buy furniture online. Less paper work fast delivery. He had found a formula to get rich, which he did accumulating $42 million in 2008. Massive huh! Internet leverage. He sold furniture directly online to his clients and not long, he site was recognized and more business came his way. Initially Sean was selling only office furniture but now also sells other types of furniture such as home and restaurant furniture.
Lessons from Sean Belnick
- Use the leverage of the mind
- Discover the opportunity to do something better
- Use the leverage of technology to provide a much efficient service
To be continued
This is a series of rich kids hub I am putting together and it'll continue on. I try as much as possible to bring out the lessons we can learn from these young people. Not only read but study the lessons at the bottom of their short stories and how they created their wealth.